Question
In: Finance
16. A firm with total costs of $1,400,000 and sales of $2,000,000 merges with a smaller...
16. A firm with total costs of $1,400,000 and sales of $2,000,000 merges with a smaller firm with total costs of $700,000 and sales of $1,200,000 million. Calculate the difference in average cost of production expressed in percent. A. 4.38 percent B. 15 percent C. 9 percent D. 6.72 percent
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Consider a representative firm with the total costs of TC=16+Q^2 (and marginal costs of 2Q, MC=2Q)...
Consider a representative firm with the total costs of TC=16+Q^2
(and marginal costs of 2Q, MC=2Q) . The market demand curve is
given by P=36-1/2Q and the starting market price is $18
1. Graph the starting scenario using comparative statistics
2. Why is this not a long run equilibrium?
3. What happens in order to transition to the long run?
4. Graph the long run equilibrium using comparative
statistics
5. How many firms are in the market in the long...
26) During March, a firm expects its total sales to be $169,000, its total variable costs...
26) During March, a firm expects its total sales to be $169,000,
its total variable costs to be $95,900, and its total fixed costs
to be $25,900. The contribution margin for March is:
Multiple Choice
$73,100.
$25,900.
$47,200.
$121,800.
$95,900.
25)
Forrester Company is considering buying new equipment that would
increase monthly fixed costs from $240,000 to $627,000 and would
decrease the current variable costs of $60 by $15 per unit. The
selling price of $100 is not expected to...
Consider a firm with total costs represented by TC=16+Q^2 and a corresponding marginal cost of 2Q...
Consider a firm with total costs represented by
TC=16+Q^2 and a corresponding marginal cost of 2Q
(MC=2Q)
1). Graph the ATC and MC, be certain to label the lowest point
of the ATC.
Consider that firm faces a price of 12$.
2). Find the optimal quantity.
3). Graph and find the total cost, total revenue, and any profit
or loss at the optimal quantity.
Consider a firm with total costs represented by TC=16+Q^2 and a corresponding marginal cost of 2Q...
Consider a firm with total costs represented by TC=16+Q^2 and a
corresponding marginal cost of 2Q (MC=2Q)
1. Graph the ATC and MC, be certain to label the lowest point of
the ATC.
Consider that firm faces a price of 12$.
2. Find the optimal quantity.
3. Graph and find the total cost, total revenue, and any profit
or loss at the optimal quantity.
Consider a firm with total costs represented by TC=16+Q^2 and a corresponding marginal cost of 2Q...
Consider a firm with total costs represented by TC=16+Q^2 and a
corresponding marginal cost of 2Q (MC=2Q)
1. Graph the ATC and MC, be certain to label the lowest point of
the ATC.
Consider that the firm faces a price of $12.
2. Find the optimal quantity
3. Graph and find the total cost, total revenue and any profit
or loss at the optimal quantity
Firm A Firm B Emissions Total abatement costs Marginal abatement costs Emissions Total abatement costs Marginal...
Firm A
Firm B
Emissions
Total abatement costs
Marginal abatement costs
Emissions
Total abatement costs
Marginal abatement costs
4
0
0
4
0
0
3
1
1
3
2
2
2
3
2
2
6
4
1
6
3
1
12
6
0
10
4
0
20
8
1. What are the total abatement costs for the firms and economy
to reduce 50% of the emissions with command and control
policies?
2. How will cap and trade improve the situation,...
Megan Schmidt works for a Williams and Co, a smaller CPA firm that has a total...
Megan Schmidt works for a Williams and Co, a smaller CPA firm
that has a total of 11 professional staff members, including two
partners. A financial statement attest client has requested the
audit firm to prepare its depreciation schedule. Megan is a new
staff member and will be responsible for this work. The client will
have someone with suitable skills, knowledge and experience to
oversee the preparation of the depreciation schedule. The audit
firm has documented its understanding with the...
No of units Fixed costs Total variable costs Total Costs Total Sales 0 15,000 0 15,000 ...
No of units Fixed costs Total variable
costs Total Costs Total Sales
0 15,000 0 15,000
0
50 15,000 10,500
25,500 15,000
100 15,000 21,000
36,000 30,000
150 15,000 31,500
46,500 45,000
200 15,000 42,000
57,000 60,000
250 15,000 52,500
67,500 75,000
300 15,000 63,000
78,000 90,000
Create a CVP graph.
Total sales revenue is $1000, total variable costs are $600 and total fixed costs are $1000....
Total sales revenue is $1000, total variable costs are $600 and
total fixed costs are $1000. The price is $10 per unit. Compute the
break-even volume in units (assume that the break-even point is in
the relevant range).
A) 166.7 units
B) 250 units
C) 280 units
D) 2500 units
Beta company allocates fixed overhead costs based on direct
labor dollars, with an allocation rate of $5 per DL$. Beta sells
1000 units of product X per month at a...
A firm has 2,000,000 shares of stock outstanding, total debt of $3,000,000 at an annual interest...
A firm has 2,000,000 shares of stock outstanding, total debt of
$3,000,000 at an annual interest rate
of 8% and annual depreciation expense of $300,000, and is
considering borrowing an additional
$6,000,000 at 8% and buying back one-half of those shares.
Assuming EBIT of $1.2 million, what is this
company’s cash coverage ratio (a) before and (b) after the
proposed restructuring? What can you
conclude about the impact of financial leverage on a firm’s cash
coverage ratio?
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